Commercial Properties are purchased with an intention to generate regular income flow. Commercial real estate includes office buildings, rental apartment suites, warehouses, gas stations, hotels, industrial and retail plaza units. Purchase of commercial properties is vital to businesses and affect their financial health as well.
Purchase of commercial properties tends to be more complicated than the transactions of residential property. Some examples of commercial properties transactions include tenants and their leases, service contracts and employment contracts of salaried workers. They are typically a part of commercial real estate transaction whether a person is selling or purchasing.
Due diligence needs to be exercised at every step for buying a commercial real estate. There are many factors involved here those are not present at the time of residential property purchase. Lack of adequate planning can lead to unscheduled costs, insufficient financing and potential environmental and other issues with off title searches including zoning, building and fire code compliance.